BILL NUMBER: AB 951	CHAPTERED  08/30/99

	CHAPTER   261
	FILED WITH SECRETARY OF STATE   AUGUST 30, 1999
	APPROVED BY GOVERNOR   AUGUST 30, 1999
	PASSED THE SENATE   AUGUST 19, 1999
	PASSED THE ASSEMBLY   MAY 13, 1999
	AMENDED IN ASSEMBLY   MAY 10, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Wiggins

                        FEBRUARY 25, 1999

   An act to amend Sections 1163, 1164, 1190, and 1191 of the Harbors
and Navigation Code, relating to bay pilots, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 951, Wiggins.  Bay pilots.
   (1) Existing law provides for retirement benefits for pilots for
the Bays of San Francisco, San Pablo, and Suisun and specified inland
waters and for the purposes of that law distinguishes between
service as a pilot and service as an inland pilot.  To determine an
inland pilot's full years of service for retirement benefit purposes,
any periods of service that an inland pilot has performed as a pilot
is required to be added to any service time performed as an inland
pilot after January 1, 1993.
   This bill would permit any periods of service that an inland pilot
has performed as a pilot to be added to service time performed as an
inland pilot after January 1, 1987.  The bill would make related
changes.
   (2) Existing law establishes a program for licensing of pilots for
the Bays of San Francisco, San Pablo, and Suisun, administered by
the Board of Pilot Commissioners.  Existing law specifies the rates
for pilotage for vessels entering or leaving those bays through the
Golden Gate, including $7.35 per draft foot of the vessel's deepest
draft and fractions of a foot pro rata and an additional charge of
64.88 mills per high gross registered ton, adjusted by the board, as
prescribed.
   This bill would increase the rate to $8.11 per draft foot and the
additional charge to 73.01 mills per high gross registered ton.  The
bill would provide for a decrease in the mill rate once the number of
licensed pilots is reduced to 60 and an increase in the mill rate
for any subsequent increase in the number of pilots.  The bill also
would provide for an incremental rate of additional mills per high
gross registered ton as is necessary and authorized by the board to
recover the pilots' costs of obtaining new pilot boats.
   Existing law also imposes a board operation surcharge of 7.5% of
pilotage fees, to be deposited in the Board of Pilot Commissioners'
Special Fund and used to support the board, and imposes an additional
charge for pension benefits payable to a fiduciary agent, as
specified.  The fund is continuously appropriated for the payment of
the compensation and expenses of the board, its officers and
employees, and the pilot training programs.
   This bill would increase rates imposed pursuant to these
provisions, incrementally, on January 1, 2000, January 1, 2001, and
January 1, 2002, as specified.
   (3)  Existing law requires the board to adopt a schedule of
pilotage rates for those operations that are not provided for in (1).

   This bill would increase these rates, incrementally, on January 1,
2000, January 1, 2001, and January 1, 2002, as specified.
   (4)  Because the bill would increase the amount of money deposited
in a continuously appropriated fund, the bill would make an
appropriation.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1163 of the Harbors and Navigation Code is
amended to read:
   1163.  (a) (1) (A) Each retired pilot and inland pilot, who has
completed 25 full years of service as a pilot or inland pilot, or
both, shall receive, as a target monthly pension, an amount that is
initially equal to 46 percent of an amount  that is an average of the
highest three of the last five years of audited annual average net
income per pilot, prior to the pilot's or inland pilot's retirement,
divided by 12, which initial target monthly pension amount shall be
subject to periodic adjustment pursuant to Section 1167.  Pilots or
inland pilots with other than 25 full years of service as a pilot or
inland pilot, or both, shall receive a monthly pension in an amount
that is determined by multiplying the above calculated target monthly
pension by a fraction, the numerator of which shall be the number of
full years of service that the pilot or inland pilot has rendered
and the denominator of which shall be 25 years, which initial monthly
pension amount shall be subject to periodic adjustment pursuant to
Section 1167.
   (B) Each disabled pilot or inland pilot shall receive as an
initial target monthly pension an amount that is based on 46 percent
of the greater of the following, which amount shall be subject to
periodic adjustment pursuant to Section 1167:
   (i) An amount that is the average of the highest three of the last
five years of audited annual average net income per pilot divided by
12 and multiplied by a fraction, the numerator of which shall be the
number of full years of service that the pilot or inland pilot has
rendered and the denominator of which shall be 25 years.
   (ii) The audited annual average net income per pilot, for the last
year prior to the pilot's or inland pilot's disability, divided by
12 and multiplied by a fraction, the numerator of which shall be the
number of full years of service that the pilot or inland pilot has
rendered and the denominator of which shall be 25 years.
   (C) Each pilot who retired before January 1, 1985, shall receive
as an initial target monthly pension an amount that is one hundred
seventy-eight dollars ($178) multiplied by the number of full years
of service he or she performed as a pilot licensed under this
division, which amount shall be subject to periodic adjustment
pursuant to Section 1167.
   (D) Each pilot who retired on or after January 1, 1985, or each
inland pilot who retired after January 1, 1993, shall receive as an
initial target monthly pension an amount that is the greater of the
following, which amount shall be subject to periodic adjustment
pursuant to Section 1167:
   (i) An amount that is calculated by multiplying one hundred
seventy-eight dollars ($178) by the number of full years of service
the pilot or inland pilot performed as a pilot or inland pilot
licensed under this division.
   (ii) An amount that is 46 percent of the average of the highest
three of the last five years of audited annual average net income per
pilot, prior to the pilot's or inland pilot's retirement, divided by
12 and multiplied by a fraction, the numerator of which is the pilot'
s or inland pilot's actual number of full years of service and the
denominator of which is 25 years.
   (2) A pilot or inland pilot who retires or becomes disabled shall
not begin to receive a pension until the beginning of the benefit
payment period next following the date on which the pilot or inland
pilot retires or becomes disabled.
   (3) A pilot or inland pilot shall not receive any benefits
pursuant to the pension plan in any benefit payment period unless the
pilot's or inland pilot's resignation as an active pilot or inland
pilot specifying a proposed date of retirement was submitted, in
writing, to the board, prior to November if the pilot's or inland
pilot's retirement is to be effective the first day of the following
January, prior to February if the pilot's or inland pilot's
retirement is to be effective the first day of the following April,
prior to May if the pilot's or inland pilot's retirement is to be
effective the first day of the following July, or prior to August if
the pilot's or inland pilot's retirement is to be effective the first
day of the following October.  The pilot's or inland pilot's
resignation as an active pilot or inland pilot shall become effective
on either January 1, April 1, July 1, or October 1, as specified in
the written resignation.
   (4) If a retired or disabled pilot or inland pilot who is
receiving a pension dies without a surviving spouse, the pilot's or
inland pilot's successor in interest shall receive the monthly
pension for the remainder of the benefit payment period within which
the death occurs, after which time the monthly pension shall cease.
   (b) (1) The surviving spouse of a deceased pilot who is eligible
for a pension pursuant to paragraph (1) of subdivision (e) of Section
1164 and the surviving spouse of a deceased inland pilot who is
eligible for a pension pursuant to paragraph (2) of subdivision (e)
of Section 1164 shall each receive, as a monthly pension,
three-fourths of the amount that the deceased pilot or inland pilot
would have received as a monthly pension pursuant to this section had
the pilot or inland pilot lived, calculated as if the deceased pilot
or inland pilot had been disabled pursuant to subparagraph (B) of
paragraph (1) of subdivision (a).
   (2) If a retired or disabled pilot or inland pilot who was
receiving a pension dies, the surviving spouse shall continue to
receive the full amount of the monthly pension to which the deceased
pilot or inland pilot was entitled for the balance of the benefit
payment period within which the death occurs, after which the
surviving spouse shall receive the amount specified in paragraph (1).

   (3) If a surviving spouse receiving a pension dies, the surviving
spouse's successor in interest shall receive the monthly pension for
the remainder of the benefit payment period within which the death
occurs, after which time the monthly pension shall cease.
   (c) For the purpose of the computations described in paragraph (1)
of subdivision (a), six months or more of service by a pilot or
inland pilot shall be considered a full year.
   (d) Except as provided otherwise in this section and paragraph (4)
of subdivision (e) of Section 1164, monthly pension amounts payable
pursuant to this section to retired pilots and inland pilots and to
their surviving spouses are payable for the life of that retired
pilot, inland pilot, or spouse.
   (e) To determine an inland pilot's full years of service under
this chapter, any periods of service that an inland pilot has
performed as a pilot shall be added to any service time performed as
an inland pilot after January 1,  1987.
   (f) In calculating the benefits of a retired or disabled pilot who
was issued an original pilot's license in 1985 and who was not
thereafter issued an inland pilot's license, or in calculating the
benefits of the widow of such a pilot who is deceased, the number of
years of service used in the calculation shall be the greater of the
following:
   (1) The actual number of full years of service the pilot has
rendered.
   (2) Ten years.
  SEC. 2.  Section 1164 of the Harbors and Navigation Code is amended
to read:
   1164.  (a) Except as provided in subdivision (b), a pilot shall be
eligible for the pension provided in Section 1163 if the pilot meets
all of the following requirements:
   (1) Held a license as a pilot and served at least 10 years in that
capacity or has attained 62 years of age, whichever occurs first.
   (2) Retired after January 1, 1972.
   (3) Is at least 60 years of age.
   (b) A disabled pilot shall be eligible for the pension provided in
Section 1163 if it has been determined by the board, based upon
competent medical evidence, that the pilot is unable to perform the
duties of a pilot.  As used in this chapter, "disabled" means a
disability of permanent or extended and uncertain duration, as
determined by the board, on the basis of competent medical opinion.
   (c) Except as provided in subdivision (d), an inland pilot shall
be eligible for the pension provided in Section 1163 if the inland
pilot meets all of the following requirements:
   (1) Held a license as an inland pilot and served at least 10 years
in that capacity after January 1,  1987, or has attained 62 years of
age, whichever occurs first.
   (2) Retired after January 1,  1987.
   (3) Is at least 60 years of age.
   (4) Since January 1,  1987, has held himself or herself out as
providing pilotage assistance to the entire shipping industry
consistent with the inland pilot's license.
   (5) For services provided after January 1, 1994, performs a
minimum of 75 assignments per  calendar year unless excused from
performance of that requirement due to medical needs satisfactory to
the board.
   (d) A disabled inland pilot who meets the requirements of
paragraph (4) of subdivision (c) shall be eligible for the pension
provided in Section 1163 if it has been determined by the board,
based upon competent medical evidence, that the inland pilot is
unable to perform the duties of an inland pilot.
   (e) (1) A surviving spouse of a deceased pilot shall be eligible
for the pension provided in subdivision (b) of Section 1163 if that
deceased pilot died after January 1, 1972, and that deceased pilot
had held a license as a pilot.
   (2) A surviving spouse of a deceased inland pilot shall be
eligible for the pension provided in subdivision (b) of Section 1163
if the deceased inland pilot died after January 1,  1987, had held a
license as an inland pilot, and since January 1,  1987, had held
himself or herself out as providing pilotage assistance to the entire
shipping industry consistent with the inland pilot's license.
   (3) In order for a surviving spouse to be eligible for any pension
benefits pursuant to this chapter, the surviving spouse shall have
been legally married to the deceased pilot or inland pilot for at
least one year prior to the deceased pilot's or inland pilot's death.

   (4) A surviving spouse of a deceased pilot or inland pilot shall
neither be eligible for, nor receive, pension benefits pursuant to
this chapter if the surviving spouse remarries.  If a surviving
spouse who is receiving a monthly pension under this chapter
remarries, the surviving spouse's successor in interest shall receive
the amount of the monthly pension for the remainder of the benefit
payment period as if the surviving spouse had died, in accordance
with paragraph (3) of subdivision (b) of Section 1163.
  SEC. 3.  Section 1190 of the Harbors and Navigation Code is amended
to read:
   1190.  (a) Every vessel spoken inward or outward bound shall pay
the following rate of bar pilotage through the Golden Gate and into
or out of the Bays of San Francisco, San Pablo, and Suisun:
   (1) Eight dollars and eleven cents ($8.11) per draft foot of the
vessel's deepest draft and fractions of a foot pro rata, and an
additional charge of 73.01 mills per high gross registered ton as
changed pursuant to law in effect on December 31, 1999.  The mill
rates established by this paragraph may be changed as follows:
   (A) Once the number of pilots licensed by the board is reduced to
60 pilots, for any subsequent decrease in the number of pilots, the
mill rate then in effect shall be decreased by an incremental amount
that is proportionate to one-half of the last audited annual average
net income per pilot for each pilot licensed by the board below 60
pilots.
   Once the number of pilots licensed by the board falls below 60,
for any subsequent increase in the number of pilots, the mill rate
then in effect shall be increased by an incremental amount that is
proportionate to one-half of the last audited annual average net
income per pilot for each new pilot that results in an increase in
the number of pilots then licensed by the board.
   The incremental mill rate adjustment authorized by this
subparagraph shall be calculated using the data reported to the board
for the number of gross registered tons handled by pilots licensed
under this division during the same 12-month period as the audited
annual average net income per pilot.  The incremental mill rate
adjustment shall become effective at the beginning of the quarter
(January 1, April 1, June 1, or October 1) as directed by the board.

   (B) There shall be an incremental rate of additional mills per
high gross registered ton as is necessary and authorized by the board
to recover the pilots' costs of obtaining new pilot boats.  The
incremental mill rate charge authorized by this subparagraph shall be
identified as a pilot boat surcharge on the pilots' invoices and
separately accounted for in the accounting required by Section 1136.
Net proceeds from the sale of existing pilot boats shall be used to
reduce the debt on the new pilot boats.
   (C) In addition to the rate change specified in subparagraph (A)
and the incremental rate specified in subparagraph (B), the mill rate
established by this subdivision may be adjusted at the direction of
the board if, after a hearing conducted pursuant to Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code, the board determines that there
has been a catastrophic cost increase to the pilots that would result
in at least a 2-percent increase in the overall annual cost of
providing pilot services.
   (2) A minimum charge for bar pilotage shall be six hundred
sixty-two dollars ($662) for each vessel piloted.
   (3) The vessel's deepest draft shall be the maximum draft
attained, on a stillwater basis, at any part of the vessel during the
course of such transit inward or outward.
   (b) The rate specified in subdivision (a) shall apply only to a
pilotage that passes through the Golden Gate to or from the high seas
to or from a berth within an area bounded by the Union Pacific
Railroad Bridge to the north and Hunter's Point to the south.  The
rate for pilotage to or from the high seas to or from a point past
the Union Pacific Railroad Bridge or Hunter's Point shall include a
movement fee in addition to the basic bar pilotage rate as specified
by the board pursuant to Section 1191.
   (c) The rate established in paragraph (1) of subdivision (a) shall
be for a trip from the high seas to dock or from the dock to high
seas.  The rate specified in Section 1191 shall not be charged by
pilots for docking and undocking vessels.  This subdivision does not
apply to the rates charged by inland pilots for their services.
   (d) The board shall determine the number of pilots to be licensed
based on the 1986 manpower study adopted by the board.
   (e) Consistent with the board's January 1999 adoption of rate
recommendations, the rates imposed pursuant to paragraph (1) of
subdivision (a) that are in effect on December 31, 1999, shall be
increased by 4 percent on January 1, 2000; those in effect on
December 31, 2000, shall be increased by 3 percent on January 1,
2001; and those in effect on December 31, 2001, shall be increased by
3 percent on January 1, 2002.
  SEC. 4.  Section 1191 of the Harbors and Navigation Code is amended
to read:
   1191.  (a) The board, pursuant to Chapter 6 (commencing with
Section 1200), shall recommend that the Legislature, by statute,
adopt a schedule of pilotage rates providing fair and reasonable
return to pilots and inland pilots engaged in ship movements or
special operations where rates for those movements or operations are
not specified in Section 1190.
   (b) Every vessel using pilots and inland pilots for ship movements
or special operations that do not constitute bar pilotage shall pay
the rate specified in the schedule of pilotage rates adopted by the
Legislature.
   (c) The minimum rates charged by pilots or inland pilots for ship
movements and internal operations shall be the schedule of ship pilot
fees recommended for adoption by the board in January 1999, and
published by the San Francisco Bar Pilots.
   (d) Consistent with the board's  January 1999 adoption of rate
recommendations, the rates imposed pursuant to this section that are
in effect on December 31, 1999, shall be increased by 22 percent on
January 1, 2000; those in effect on December 31, 2000, shall be
increased by 15 percent on January 1, 2001; and those in effect on
December 31, 2001, shall be increased by 10 percent on January 1,
2002.
